When a loved one passes away, it is can be difficult both emotionally and logistically. There are many factors that play into determining what everyone’s role is and who receives what.
We discuss what goes into court accounting and when you would need to utilize this service.
When Should I Use Court Accounting?
Court accounting is typically used when no will exists or the decedent did not appoint an executor. If this is the case, a court accounting of the assets and liabilities of the estate must take place by a court-appointed administrator. Even if the decedent appointed an executor before his or her death, a formal accounting will need to take place if beneficiaries do not agree upon the distribution of assets. The court-appointed administrator will be able to complete the same process as an executor but will have the ability to determine which assets go to each beneficiary.
Related Article: What’s the Difference Between Informal and Formal Court Accountings?
Court accounting is for more challenging cases when compared to informal accounting and can provide clarity on whether or not there has been any misappropriation of assets or mismanagement of funds. With court accounting, you learn a great amount of information you may not expect, such as realizing an estate’s assets were not properly managed or learning that the trustee took advantage of the situation and person.
If there are disagreements amongst beneficiaries, court accounting may be the best option. Although court accounting may be more expensive than informal accounting, it is better to let a professional handle the situation to avoid arguments and lawsuits amongst loved ones. Let someone else do the mediating for the family in order to make the process fair and simple.
Related Article: 4 Things the Court Pays Attention to in a Court Accounting
Do you think you might need help with court accounting?
Feel free to contact us! Our team is always here to help our clients. We can help by answering any questions you may have regarding court accounting and walk you through the steps.
About Marcia Campbell, CPA
As the most experienced CPA in the Inland Empire specializing in working with seniors, Marcia L. Campbell, CPA is committed to helping each client thrive by caring for their personal and financial wellbeing with genuine interest, well-established expertise, and a focus on respectful partnership.
If you or your parents need help with your finances, please contact us by filling out a Contact Form or giving our office a call at +1(951)686-3608.